News

Uncertainty Remains over Labor Agreements between UAW and Auto Makers

James L. Flint

• November 13, 2023

The recent labor agreements between the United Auto Workers (UAW) and the Big Three auto manufacturers may not be finalized just yet. Ford Production workers at the Louisville assembly and Kentucky trucks plants have voted against the proposed contract. The UAW Local 862 union reported that 55% of production workers opposed the deal, while 69% of skilled trades workers were in favor of it. However, the overall percentage result has not been revealed by the local branch.

In order for the agreements to be ratified, the majority of workers at each auto maker must approve them. While the UAW will announce the final results, some local union branches have already disclosed theirs.

Similarly, UAW workers at General Motors' Flint, Michigan plant also rejected the tentative contract agreement last week. The UAW Local 598 union stated that 53% of production workers were against the deal, while 65% of skilled trades workers supported it. Overall, 52% voted against the proposal.

In another development, production workers at the Flint engine operations plant voted against the agreement, but four other units showed strong support, according to UAW Local 659.

On a positive note, the initial vote by UAW Local 900 workers at Ford's Michigan assembly plant resulted in overwhelming acceptance of the deal, with 82% in favor.

As some union branches share their results and others remain silent, it is unclear whether there is a risk of these agreements being rejected. However, as more votes are yet to take place among Stellantis (STLA), Ford, and GM workers, investors will closely monitor any signs of doubt.